Auto Interest Calculator in GSTR-3B. New Functionality

Auto Interest Calculator in GSTR-3B. Upcoming new Functionality

As a facilitation measure for taxpayers & for assisting the taxpayers in doing a correct self-assessment, a new functionality of interest calculator has been released in GSTR-3B. According to GTN, this functionality will arrive at the system computed interest on the basis of the tax liability values declared by the taxpayers.

The interest computed by the system has been aligned with the Section-50 of the CGST Act, 2017, as amended. Consequently, interest liability for respect of supplies made during the present tax-period and declared in the GSTR-3B for this period will be calculated only on that portion of the tax which is paid by debiting the electronic cash ledger, i.e., tax paid in cash. With respect to the liability pertaining to the previous tax-period(s), and paid in later GSTR-3B, the interest will be computed for the entire liability, whether paid by debiting the electronic cash ledger or electronic credit ledger.

Auto-population of system computed interest in GSTR-3B

This new functionality will compute the minimum interest applicable on the basis of the values declared by the taxpayers in GSTR-3B for a particular tax-period. This system computed interest will be auto-populated in Table-5.1 of GSTR-3B for the next tax-period, the way it is done for the Late fees at present.

The system computed interest values auto-populated in next GSTR-3B return will be kept editable, initially. However, the system generated PDF of filed GSTR-3B will contain both values: the System computed interest, and the user paid interest values.

The interest applicable, if any, on the tax liability declared in the GSTR-3B of a particular tax-period will be computed after the filing of the said GSTR-3B. These system computed interest values will be auto-populated in the Table-5.1 of the GSTR-3B of the next tax-period. The facility would be similar to the collection of Late fees for GSTR-3B, filed after the Due date, posted in the next period’s GSTR-3B.

This functionality has a user-friendly interface, which informs the taxpayers regarding the manner of system computation of interest values for each tax-head. This functionality also assists the taxpayers in doing correct computation of interest for the liability of any past period declared in the GSTR-3B for the current tax period, based on the details furnished by them on the portal.

For the detailed advisory regarding the interest calculator in GSTR-3B, < Click here > .

For Annexure containing a sample computation with screenshots of the upcoming functionality,< Click here > .

• First-time experience in filing appeal a reasonable & bona fide cause for delay
• Non-disclosure of destination place in documents no ground for seizure u/s 129 of GST Act.
• Charging of exorbitant interest in commercial transactions not against morality or justice
• Assessees not required to prove “source of the source‟ of funds Prior to Finance Act 2022
• During pendency before settlement commission, assessee have right to contest assessment